Budget will spur growth in food processing sector: Minister
July 6th, 2009 - 9:14 pm ICT by IANS
New Delhi, July 6 (IANS) Finance Minister Pranab Mukherjee’s proposal of investment-linked tax incentives for setting up cold chain infrastructure and warehousing facilities will greatly help the food processing industry in the country, said Minister for Food Processing Industries Subodh Kant Sahai.
“I propose to extend investment-linked tax incentives to the businesses of setting up and operating cold chain, warehousing facilities for storing agricultural produce and the business of laying and operating cross-country natural gas or crude or petroleum oil pipeline network for distribution on common carrier principle,” Mukherjee said in parliament Monday while presenting the union budget.
“Under this method, all capital expenditure, other than expenditure on land, goodwill and financial investments will be fully allowable as deduction,” he added.
Reacting to the proposal, Sahai told IANS: “This is a welcome move. It will help spur the growth of cold chain infrastructure and warehousing facilities.”
Sahai also welcomed the finance minister’s proposal to give boost to research and development (R&D) in the manufacturing sector.
“R&D and innovation are the key to the growth of the food processing industry and this move will help in our plans to boost R&D work in the sector,” Sahai said.
Both infrastructure and R&D are key focus areas of the food processing ministry’s 100-day action plan.
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